← Embedded Finance Index 2026

Klarna

Also a provider — view Klarna’s profile →

“Can Klarna transform from the world's leading BNPL brand into a full-stack digital financial OS — combining shopping, payments, banking, open banking infrastructure, and AI — while scaling US consumer lending profitably off-balance-sheet?”

Founded2005
HQStockholm, Sweden
FoundersSebastian Siemiatkowski, Niklas Adalberth, Victor Jacobsson
Total raised~$6.2B
Latest roundIPO, July 2025
Valuation~$14.6B at IPO pricing (post-IPO market cap higher at open)
IndustryFintech / Consumer banking
The story

Founded in 2005 as a simple invoice-based pay-later tool for Swedish e-commerce, Klarna progressively expanded into a full digital bank after obtaining its banking license in 2017. The company rode the BNPL wave to a $45.6B peak valuation in 2021 before a dramatic down-round in 2022 forced a pivot to profitability and US growth. By 2025 it had IPO'd on NYSE, and by 2026 its embedded finance stack had expanded beyond BNPL to include banking accounts, a Klarna Card, open banking infrastructure sold B2B, insurance, and a capital-light SRT-backed US financing program.

Last 12 months
2026-04
2026-03
2025-11
2025-07
Product timeline
2005
Founded in Stockholm as an online invoice/pay-later service for e-commerce merchants.· pivot
2014
Acquired SOFORT GmbH, gaining open-banking bank-transfer capabilities across Europe.· acquisition
2017
Granted full Swedish bank license by Finansinspektionen, rebranding to Klarna Bank AB (publ).· banking
2021
Raised $639M at $45.6B valuation, becoming Europe's most valuable private fintech; launched Klarna Card and Klarna Balance.· card
2022
Down-round at $6.7B amid rising rates; restructured focus on profitability and US expansion; launched open banking B2B platform.· pivot
2024
Returned to profitability; launched AI-powered shopping assistant powered by ChatGPT; began IPO preparations.· pivot
2025
Listed on NYSE under KLAR at $40/share, raising $1.37B; shares opened at $52 on IPO day.· ipo
2026
Completed sixth significant risk transfer deal ($1.7B) and doubled Elliott Investment Management forward-flow facility to $2B supporting $17B US financing expansion.· lending
Regulated entities
3
regulatory licences held by Klarna
Licence types, jurisdictions and registered entities are in the Embedded Finance Index report.
The stack
7 layers disclosed in Klarna’s embedded-finance stack
Payments / PSP
Klarna Payments (self-operated)WorldpayCheckout.comAdyenMollieWorldlineBamboraVALITORStripeNexi
Banking / BaaS
in the full report
Card issuing
in the full report
Lending
in the full report
Insurance
in the full report
KYC
in the full report
Sponsor bank
in the full report
Accounting gap: minor
12 more providers across 6 layers, with confidence-scored evidence and source URLs, are in the Embedded Finance Index report.